Return to Profitability: BTC Bull Signal Suggests Bitcoin Thunderstorm
• Bitcoin’s January price rally has restored profitability in the market, with the Realized Price currently at $19,850.
• Analysts use metrics like the Market Value Realized Value (MVRV) Ratio to determine whether a prolonged bull or bear market is on the horizon.
• The MVRV ratio recently recovered above 1.0 after falling below 0.8, indicating that the medium-long term outlook for Bitcoin is positive.
Bitcoin Market Returns to Profitability
The Bitcoin market’s return to profitability has been a result of its January price rally last at around $23,500 – above the so-called “Realized Price”, which is the average BTC price at the time when each BTC token last moved. This marks a significant shift in short-term momentum and indicates improvement in long-term market outlook.
MVRV Ratio as an Indicator
Analysts use metrics like the Market Value Realized Value (MVRV) Ratio to determine whether a prolonged bull or bear market is on the horizon. This metric looks at the differential between the Bitcoin price and Realized price and works out levels that are 0.8 below and 2.4 and 3.2 times above it – 0.8 being extremely weak and 2.4-3.2 being extremely strong signals for a bullish trend ahead in terms of long-term returns on investments made into Bitcoin now or later down this year.
Recent Recovery Above 1.
The MVRV ratio recently recovered back above 1 after falling below 0.8 following FTX’s collapse last year – an indication of extreme market weakness at that time period but also one that suggests that investors should be looking more positively on long-term returns when investing into Bitcoin right now or later down this year if they have not already done so yet this past month of January 2021..
History Suggests Positive Outcome
If history is anything to go by then analysts believe that there will be an overall positive outcome for those who invest into Bitcoin over this medium-long term period; as such investors will want to pay close attention to these technical indicators like MVRV before making any decisions regarding their investments into cryptocurrency markets like Bitcoin and others alike over 2021 onwards from hereon in..
In conclusion, analysts agree that there is still room for some upside potential when it comes to investing into cryptocurrencies like Bitcoin over this medium-long term period – provided investors take note of technical indicators like MVRV which can help them make better informed decisions regarding their investments into these digital assets – something everyone should do before entering any kind of cryptocurrency investment right now or later down this 2021 year!